How to Get Cheap Car Insurance You Can Afford

Cheap Car Insurance
Photo by Vlad Deep from Unsplash

In almost all states, car insurance is mandatory. It helps ensure financial responsibility and capability in case of unfortunate circumstances, such as auto collisions.

The specific coverages can differ, but in a nutshell, the right insurance can minimize the financial burden.

While car insurance might provide you with peace of mind, it can also be a big weight on your shoulders. As such, a lot of you are probably looking for more affordable rates.

Read on as we talk about some of the best things to do.

1. Avail of a Bundle Discount

One of the potential ways to make car insurance cheaper is through bundling. Applying for multiple insurances from the same lender might make you eligible for a discount.

For instance, having health insurance, car insurance, and even life insurance from one company can lower your premiums by 5% to 25%.  

Not to mention, bundling offers simplified policy management. It makes payments seamless because you are paying your dues to the same company.

2. Make the Most of Multi-Car Discounts

It is similar to bundling, but the main difference is that instead of having different types of insurance policies, you are combining multiple cars in a single policy.

This can be a great choice for families with several cars.

The requirements can vary from one insurer to another. In most instances, however, most will require the drivers to be from the same residence or have an immediate relationship.

3. Pay Your Car in Full

If you have the financial means, it might be wise to consider paying for your car in full. If not, then you can at least choose a shorter repayment period.

While the insurance cost if you own car will not go down after paying off your vehicle, the good news is that you can get rid of or reduce the coverage of the policies that the lender considers mandatory.

While your car is under a loan, liability insurance and collision insurance are two of the most common requirements among lenders.

Nonetheless, once your car is fully paid for, such can be optional. You can also qualify for lower rates.

4. Improve Your Credit Score

A poor credit standing can be a burden, even when it comes to car insurance rates. Insurance companies use what is called credit-based insurance score in their assessments.

It determines the likelihood by which you will file a claim, giving the lender insights about the risks that you carry. A lower score can translate into a higher premium.

Nonetheless, take note that the use of credit-based insurance scores may not always be legal. There are some states that ban its use for determining policy rates.

These states include California, Hawaii, Maryland, Michigan, and Massachusetts.

5. Choose Pay-Per-Mile

If you do not drive your car that much, another potential way to lower your insurance premium is by switching to a pay-per-mile plan. As the name implies, it is an insurance payment based on your mileage.

There is a fixed base rate, which depends on factors like your age and driving records. On top of that, you must pay a per-mile rate, which can vary from one insurer to another.

Some of the people who might benefit from this type of car insurance are those who work from home, students, or those who use public or mass transportation most of the time, even if they have their own cars.

6. Request for a Higher Deductible

A deductible refers to the amount that you must settle with the insurer before the insurance takes effect. The price can vary, but it can often be in the range of $250 to $1,000. A lower deductible can correspond to a higher premium.  

Many of you are probably worried about where to get money to pay for a higher deductible. One of the options you might want to consider is applying for a personal loan. With the right lender, you can get approved even without a credit check!

7. Secure Your Car

It is also likely that you can qualify for a more affordable car insurance premium if you take proactive measures for securing your vehicle. Using technologies to deter theft can minimize the risk that the insurer has to take. It can lessen the chances that your vehicle will be stolen.

Among others, one that you might want to install is an anti-theft device. A GPS tracking system can offer potential savings of up to 25%.

8. Maintain a Good Driving Record

Insurers assess how risky an individual is when evaluating potential premiums. In this case, the risk is not only based on creditworthiness but also on driving behaviors. If you can show good driving records, such as having no accidents or traffic records, you can possibly enjoy insurance discounts.

More so, it can help if you will take a defensive driving course, especially if you are a new driver. It can demonstrate better driving knowledge and skills, and in turn, might lower the perceived risk from the perspective of the insurer.

9. Shop Around

It can be tempting to immediately sign up for the first policy that you see. It might seem like you are saving time by doing so, but in reality, you might be foregoing the opportunity to qualify for a better rate.

A good thing to do is to shop around and compare quotes. These days, most insurers have websites, making it easy to figure out how much they will charge you. You can also request a quote online. Compare not only their prices but also read the fine print to be sure that you are comparing apples to apples.

In Closing

Photo by Oskars Zvejs from Pixabay 

From bundling multiple insurance policies in one lender to applying for a higher deductible, this post talked about some of the potential ways to achieve cheap car insurance and make car insurance more affordable.

With a proactive approach, you can save money while helping you minimize the potential financial responsibility associated with owning and driving a car.

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